GameStop Launches Unsolicited $56 Billion Bid for eBay

GameStop Makes Bold Bid for eBay in $56 Billion Deal

GameStop Corp. is attempting to acquire eBay Inc. in a deal worth approximately $56 billion in cash and stock. The proposal, led by Ryan Cohen, founder of GameStop, values eBay at $125 per share, representing a 20% premium to its Friday close.

GameStop, which has built a roughly 5% stake in eBay, has secured an initial non-binding "highly confident letter" from TD Bank to provide approximately $20 billion in debt financing for the deal. In a memo to investors, GameStop pledged to find $2 billion in annual savings within 12 months of closing.

eBay will review the offer with a focus on the value to be delivered to its shareholders, including the value of the GameStop stock consideration and the ability of GameStop to deliver a binding, actionable proposal.

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Shares of eBay gained as much as 7% in New York on Monday, the most since July 2025, and were up 5.4% at 10:44 a.m. New York time at $109.69. GameStop shares, on the other hand, were down about 5.2%.

The Deal in Numbers

The takeover bid follows the surprising ascent of GameStop, a chain of video game outlets that shrank its brick-and-mortar footprint after gamers increasingly bought software in digital stores. Michael Burry, the Scion Asset Management head who rose to prominence after a winning wager against mortgages ahead of the 2008 financial crisis, has taken a bullish stance on GameStop since 2019.

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Burry has stated that GameStop's takeover attempt makes perfect sense to him, citing synergies between the two companies and the potential to form a "collectibles giant."

Cohen is proposing to take over a company roughly four times larger than the retail chain he operates. GameStop has a market value of $12 billion, while eBay is valued at around $46 billion. The takeover offer is split evenly between cash and GameStop common stock.

Both companies have struggled to adapt to changing consumer preferences. GameStop has shut stores and emphasized collectible toys and trading cards as more video games get purchased online. EBay too has been pushing collectibles and used goods on its own marketplace, creating a business overlap.

About 136 million shoppers globally made purchases on eBay in the 12-month period ending March 31, with shoppers spending approximately $80 billion annually on the marketplace.

eBay itself is in the midst of a turnaround, according to Bernstein analysts, who wrote that "to the extent there are any challenges or volatility from categories like Collectibles, this could put further strain on the math." GameStop's Cohen has stated that he is prepared for a proxy fight and will take the offer to shareholders if necessary.

Cohen has set ambitious goals for himself, including lifting GameStop's market value to $100 billion, which would trigger a compensation package worth options on over 171 million shares. In Sunday's statement, Cohen said he would take over a combined entity but get paid solely based on the performance of that firm.

Bloomberg Intelligence analysts Poonam Goyal and Sydney Goodman have stated that they see low probability of a deal, citing substantial dilution and execution risk.